UN-Driven Policies: The Growing Role of Liability Insurance in the Philippines

Discover how UN-driven policies highlight the role of liability insurance in protecting businesses and employees in the Philippines from financial risks.

November 6, 2024
Global Insights, Industry Corner, Insights & Updates

In both professional and business environments, mistakes are an inevitable part of fulfilling our duties and responsibilities. This reality can be overwhelming, especially for business owners and managers who bear significant responsibility for the safety and well-being of their employees, clients, and the public.

Immediate examples are business owners who manage construction projects or oversee production in factories, where safety protocols are crucial and even small mistakes can lead to costly damages. In every business, there is an inherent risk of unintentional harm or negligence that could impact clients, employees, or the public.

The United Nations (UN), a global leader in advocating for our rights and security, became an example by implementing liability policies for its workforce as early as 1985. It established a standard that sets liability insurance coverages as essential for operations and employees.

The Increasing Relevance of Liability Insurance

Through the years, the United Nations championed responsible business practices corresponding to environmental and social protections and adherence to basic human rights. These standards should inspire both government and private companies to strive for the same principles.

Across industries, companies' and professionals' accountability toward their workers, customers, and even the general public has come under increasing scrutiny. Insurance reports show business liability claims steadily increasing in the last couple of years. In the Philippines, demand for business liability insurance has grown and premiums have risen by 3 percent per year. This trend signals that businesses recognize the importance of mitigating risks tied to employee welfare, environmental impact, and community safety.

Workers, consumers, and the general public have also become more and more aware of their rights, which must be encouraged. Furthermore, movements to hold big businesses liable for burning issues such as climate change, pandemics, or even community environmental degradation beg for lines and limits to be drawn.

Liability insurance fosters a sense of security for businesses and employees. It serves as a safeguard, covering compensation for damages that policyholders might unintentionally cause to others. It assumes responsibility on behalf of the company and individuals, protecting them from the financial impact of legal claims. Covering the financial repercussions of whatever might go wrong in operations, allows companies to focus on growth and their employees to do their work at ease under the protection of their employers.

Reliable Insurance Brokers’ Commitment to UN Advocacy

At Reliable Insurance Brokers, we align with these UN-driven principles by providing insurance solutions that help safeguard businesses, their leaders, and their workforce. Our liability insurance offerings address various facets of business protection:

General Liability Insurance: Covers third-party claims for bodily injury, property damage, and personal or advertising injuries in business operations. This essential protection helps businesses feel secure in meeting safety and accountability standards.
Directors & Officers (D&O) Liability Insurance: Protects the personal assets of company leaders from legal costs and settlements due to business decisions. This insurance promotes responsible leadership and aligns with good governance practices.
Professional Liability Insurance: Shields professionals from claims of errors, omissions, or negligence in their work. This coverage builds trust and reliability in essential services across industries.
Cyber Liability Insurance: Provides financial protection against cyberattacks, data breaches, and privacy threats. As businesses move online, this insurance ensures the safe and responsible handling of digital data.

Advocating for a Resilient Business Environment

Operating a business means accepting the potential for human error. However, assigning blame does not reduce costs or restore reputations. Liability insurance provides a vital layer of protection, helping companies safeguard their finances against unforeseen risks.

Businesses must be more accountable, and liability insurance helps uphold trust, ensure compliance, and promote a resilient economy. With guidance from Reliable Insurance Brokers, businesses can explore tailored liability insurance options that meet their unique needs as they strive toward responsible and sustainable growth.